While the decline of cheques may evoke nostalgia, the rising trend of online banking payments cannot be ignored. Cheque volumes, on the other hand, have plummeted by over half in the same period.
With a staggering 60% increase since 2018, online and mobile banking transactions have reached an all-time high of 73.1 million in the first half of this year alone.
This article delves into the changing payment landscape, highlighting the extinction of cheques and the explosive rise of online banking.
60% Increase in Online and Mobile Banking Payments
Since 2018, there has been a significant increase in online and mobile banking payments, with a jump of 60%. The number of payments made online or by mobile rose to 73.1 million in the first half of this year, marking the highest volume of online and mobile banking payments recorded in a six-month period since 2016.
This surge in digital payments reflects the changing consumer behavior and the convenience offered by online and mobile banking platforms. With the advancement of technology and the increasing accessibility of smartphones, more and more individuals are opting for the convenience and ease of conducting their financial transactions digitally.
This trend is expected to continue as financial institutions continue to invest in improving their online and mobile banking services.
Drastic Decline in Cheque Usage
How significantly has cheque usage declined?
Cheque usage has experienced a drastic decline, plummeting by more than half since 2018. In the first half of 2023, cheque volumes were down 12.1% to 7.5 million.
This decline in cheque usage can be attributed to the explosive rise in online and mobile banking payments, which have jumped 60% since 2018. With the number of online and mobile banking payments reaching 73.1 million in the first half of this year, it is evident that consumers are increasingly opting for the convenience and efficiency offered by digital payment methods.
As cheque volumes continue to decrease, it is clear that their extinction is becoming an inevitable reality in the modern financial landscape.
Soaring Credit and Debit Card Payments
Credit and debit card payments have experienced a significant surge in volume and value. In the three months to the end of June, there were more than 604 million payments, totaling almost €22.7bn. Of these payments, 85% were made within Ireland, highlighting the growing reliance on card transactions within the country.
The majority of these payments, accounting for 80%, were made in person. Supermarkets and restaurants were the primary focus of consumer spending. Daily grocery spending amounted to €43.7m, while dining out contributed €16.1m to the daily payments recorded in the period.
Contactless payments played a significant role, accounting for almost 85% of all transactions. These transactions had an average value of €16.46. Additionally, 41% of these transactions were made using mobile wallets instead of physical cards.
Dominance of Contactless Payments
The dominance of contactless payments is evident in Ireland, with almost 85% of all transactions being made through this method. Around 3.8 million contactless payments are made per day, with an average transaction value of approximately €16.46.
Interestingly, 41% of these contactless transactions are made using mobile wallets instead of physical cards.
This surge in contactless payments has significantly reduced the usage of cash, with fewer than 300,000 cash withdrawals per day, and the average withdrawal amount being around €141.
The convenience and speed of contactless payments have made them increasingly popular among consumers, allowing for quick and seamless transactions in various establishments.
As technology continues to advance, it is likely that contactless payments will continue to dominate the payment landscape in Ireland and beyond.
International Spending Trends and Payment Processing Insights
Analyzing international spending trends and payment processing insights reveals valuable information about consumer behavior and transaction patterns.
In Ireland, Irish cardholders have spent nearly €4 million on restaurants outside of the country, indicating a significant portion of international spending.
Additionally, the daily spend at fuel stations and other automotive retail outlets was €13.3 million, emphasizing the importance of transportation expenses. It is worth noting that spending on transport accounted for around €400,000, suggesting a smaller portion of overall international spending.
Furthermore, payment processing data indicates that more than 6.6 million payments were processed each day, with in-person payments outnumbering online payments.
These insights provide a comprehensive understanding of international spending habits and highlight the continued rise in payment volumes in Ireland.
Conclusion
In conclusion, the rapid rise of online and mobile banking payments has revolutionized the landscape of financial transactions, rendering traditional paper-based methods such as cheques nearly extinct.
The dominance of credit and debit card payments, along with the increasing popularity of contactless payments, further solidifies the shift towards digital transactions.
As technology continues to advance, it is evident that the future of payments lies in the convenience and efficiency of online and mobile banking.
